Steps to Emerge Stronger (Staff)

Dear Colleagues, 

Earlier today, Provost Baicker and I shared with the faculty a set of plans and changes developed over the summer related to the University of Chicago’s academic activities. These changes, once implemented, will position the University for greater strength and resilience in the years ahead. Those changes will affect all of us in important ways, and I write to share information about the path forward. 

First, thank you for your dedication to the University and your hard work across so many of our key areas. The plans described today will continue to draw on your committed expertise.

There are two reasons that new plans and actions are necessary: one proximate, one structural. The structural set of budget difficulties are likely familiar to you, as we have been working through them for some time. Thanks to the effort of so many across the University, we largely met our budget target this past year, engaged partners for a record-breaking fundraising year, and advanced some of the major priorities of the University. That was not easy to do. You have contributed to the financial health necessary to sustain our well-established culture of excellence and to pursue the highest aspirations befitting the intellectual rigor of this special university.

Even so, the steps ahead have become much steeper in the face of proximate challenges. Ongoing federal policy changes are creating new financial liabilities and greater risks than we had to contend with a year ago. The sheer number and scale of such potential losses–even if only one or two were to materialize fully–and the ongoing uncertainty mark a substantial change. There is no way to navigate this new environment without taking a close examination of our academic operations and continuing our work to have an administrative structure that is effective and efficient.

Our plans for the path ahead can be found on this dedicated webpage, which includes frequently asked questions. To address the emerging challenges, we will further reduce our expenses by $100M on a base of $3.2bn annually. Our plans to achieve this goal are different from efforts in the past that leaned on across-the-board budget cuts or benefit reductions, neither of which are contemplated at this time. However, these efforts will inevitably result in reductions in staff positions this year. Taking into account reductions over the last two years though the voluntary retirement initiative and hiring freeze last year, we expect to experience a total reduction of approximately 400 staff employees. 

These plans require difficult choices and will result in the University stopping some good and worthy endeavors, while growing others that are most fundamental to our core mission. You will hear more about how these changes may impact your areas from local leadership in the coming weeks.

Thank you, again, for your contributions to the University. I ask each of you to approach this moment as an opportunity to sharpen our focus and strengthen the University for the future. We are fortunate not to face this time alone: across campus and around the world, thousands of people—friends, alumni, and many others—have shown their belief in our mission and values, standing with us as we navigate change.

Sincerely,

Paul

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Paul Alivisatos

President